Netflix Inc (NASDAQ: NFLX) announced the departure of two prominent executives, Rachel Whetstone, chief communications officer, and Dean Garfield, VP of public policy, as part of a planned restructuring.
Co-CEO Ted Sarandos informed staff of the change in a memo, expressing gratitude for Whetstone and Garfield's contributions and wishing them success in their future endeavors, Variety reports.
Whetstone, who has been with Netflix since 2018, led the company's communications strategies after a notable career in similar roles at Meta Platforms Inc (NASDAQ: META), Uber Technologies, Inc (NYSE: UBER), and Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google.
Garfield, who joined in 2019, previously worked with key industry bodies and the White House in various strategic roles.
Netflix plans to create a new executive position, a "chief global affairs officer," to oversee communications and policy functions.
According to Variety, Garfield's limited experience in communications and Whetstone's decision not to pursue the role contributed to their exits.
Following Whetstone's departure, Netflix's publicity teams will report to Chief Marketing Officer Marian Lee until the new global affairs executive is appointed.
Additionally, Oliver Rawlins, VP of Public Relations for Europe, the Middle East, and Africa, will temporarily oversee the company's communications staff. Garfield's responsibilities within policy will continue under Chief Legal Officer David Hyman.
Also, last week, Netflix closed its Southern California AAA game studio, Team Blue, less than a year after its formation.
Netflix reported third-quarter revenue of $9.83 billion, up 15%, topping the Street consensus of $9.77 billion.
The streaming giant ended the third quarter with 282.72 million global paid subscribers, up 14.4%. The company added 5.07 million new paid subscribers in the quarter, down from 8.8 million a year ago.
Netflix expects fourth-quarter revenue of $10.13 billion versus consensus of $10.14 billion.
Analysts are optimistic about Netflix heading into 2025, noting multiple growth drivers and solid quarterly performance.
Bank of America highlighted Netflix's advantages in media, citing ad growth, gaming, and live content as key growth areas. Analyst Jessica Reif Ehrlich expressed confidence in Netflix's long-term positioning and ad-tier expansion, noting the platform's sizeable scale as a core advantage.
Macquarie expects big fourth-quarter releases like Squid Game 2 and the NFL Christmas games to drive engagement. Analyst Tim Nollen, however, noted that monetization challenges remain with ad-supported options and international markets.
KeyBanc projected double-digit revenue growth, driven by ad-tier monetization and potential price hikes in 2025. JPMorgan expects the streaming giant to become the default choice for TV and film content.
Netflix stock gained 61% year-to-date.
Price Action: NFLX stock is down 0.40% at $756.38 at the last check on Wednesday.